The MENA insurance market is ripe for disruption. Low insurance penetration combined with high smartphone adoption creates ideal conditions for insurtech companies. However, navigating the licensing landscape requires careful planning.
Insurance Penetration Gap
Insurance penetration in the MENA region remains well below global averages. Health insurance mandates in the UAE and Saudi Arabia are driving growth, but significant opportunities exist in motor, travel, property, and life insurance.
Licensing Jurisdictions
The UAE Insurance Authority, SAMA in Saudi Arabia, and the CBB in Bahrain each offer pathways for insurtech companies. Some jurisdictions allow insurtechs to operate as intermediaries, while others require full insurance company licenses.
The Intermediary Route
Many insurtechs enter MENA markets as licensed intermediaries or brokers, partnering with established insurers for underwriting capacity. This approach reduces capital requirements and accelerates time to market.
Takaful Considerations
Islamic insurance, or Takaful, is the preferred insurance structure for much of the MENA population. Insurtechs must understand whether their products need Takaful-compliant structures to address the majority of the market.
Building an Insurtech in MENA
We advise insurtech companies on jurisdiction selection, licensing strategy, insurer partnerships, and product development for the MENA market. Our regulatory relationships facilitate smoother application processes.